1: Start by trading dummy (on paper)

I have already told you that to earn money from trading, it is very important to learn and understand trading. If you trade without learning, then it is possible that you may earn some money in the beginning but in the end you will suffer losses.

Because trading is such a rule where one trader makes a loss and the other trader makes a profit, it means that in trading, the money of one person goes to another person, that is why new people in online trading mostly see losses.

This happens because there are many experienced traders who have been trading for many years and after some time they get a good feeling that –

This happens for this reason, there are many experienced traders in the stock market who have many years of regular trading experience, and after some time they get a good idea –

How are chart patterns formed in trading?

How does the price change?

Where should one enter and where should one exit?

How much stop loss and how much target should be kept in the trade?

How to minimize loss and maximize profit?

You will be able to learn all these things only when you give time to trading and practice it continuously. An experienced trader has long experience of all these things, that is why he earns money while a new trader mostly suffers loss in trading in the beginning.

If you do not want to take risk then paper trading is best for you. Paper trading means trading on paper. When you feel on the chart that the price is going to increase from here, write it on paper and also write your target and stop loss.

After some time your target price or stop loss will be affected. Thus, keep practicing trading on paper continuously and when you start getting profit on paper 7 times out of 10, now you are ready to start trading in the live market.

2: Earn money in stock market by online trading

To trade in the stock market, first of all you have to open a demat account with a broker. Then the demat account has to be linked to the bank account and money has to be deposited in it. Now you can start buying and selling shares in the stock market and earn money.

You can earn money from online trading in the stock market, such as Intraday Trading, Swing Trading, Option Trading etc. You can earn money through many types of online trading.

In Intraday Trading, you have to buy and sell shares in the same day, while in Swing Trading, you can earn money by buying and selling your shares within a few weeks to a few months.

Talking about Option Trading, it is more risky than Intraday and Swing Trading. Because in this, all your money can become zero in a short time, or it starts decreasing.

Still most people are attracted to option trading because in this you can buy more lots of shares for less money and make money very quickly.

3: Earn money by trading in Nifty and Banknifty

Instead of trading in stocks, if you trade in indices like Nifty or Banknifty, then you will never have to face the problem of liquidity.

This means that there are some stocks in which the number of buyers and sellers is very less. The problem with such stocks is that when you place an order to sell your purchased shares, there are no buyers in them, which means something. Liquidity is very low in stocks.

While there is no problem of liquidity in Nifty or Banknifty, that is why you can earn good money by trading in Nifty and Banknifty.

You must know that Nifty is an index of the top 50 companies of India while Banknifty is an index of the 12 largest banks of India. If you have good knowledge of the banking sector then you should trade in Bank Nifty otherwise you can also earn good profits from Nifty.

To trade in Nifty or Bank Nifty, you have to buy shares in lots. The lot size in Nifty is 50 shares while the lot size in Bank Nifty is 25 shares.

Some big traders prefer to trade in Bank Nifty instead of Nifty because in this you have to keep an eye on only 12 banks while there are 50 companies in Nifty.

If you want to earn money by trading in Bank Nifty, then you have to keep an eye on only the top 4-5 banks because the weightage of the top 5 banks of Bank Nifty is more than 50%, HDFC Bank alone has a weightage of 22%.

4. Earn money from futures and options trading

To earn money from futures and options, you first have to go to your broking app and activate the F&O segment. Then you can start trading in futures and options.

Friends, trading in futures and options in the stock market is a bit risky, that is why you should trade in it only when you have a good understanding of futures and options.

In the beginning I told you that people make profits of lakhs of rupees in a few minutes. Let me tell you that these people do option trading. In option trading you have to buy and sell call and put options.

If you think the market will go up then you can buy a call option.